Charlotte’s Experiencing a Commercial Real Estate Boom

Did you know that over one billion dollars in office building real estate sales occurred in Charlotte last year?

That’s a nearly 25% increase in sales from the same period the year before (2013.) And it’s not just office buildings in Charlotte that are attracting the attention of big time investors: industrial space, retail space, and apartment buildings are all being snapped up here at a record pace. And that’s great news for your property value if you’re a homeowner!

fifth third centerSo, what big sales helped the Queen City hit these record numbers? Let’s take a look.

The Fifth Third Center, an Uptown flagship building, went under contract in mid-July to sell for over $215,000,000. The deal set a new benchmark for per-square-foot office space pricing in Charlotte.

400 South Tryon, one of the…ahem…least attractive buildings in Uptown, sold in October for $61,000,000 to several adviser groups. At the time the building was 96% occupied.

Northlake Mall, one of our favorites in town, sold for a record $248,000,000 in December which marked the largest commercial real estate transaction of the year. The sale was part of an overall $1.7 portfolio building effort by Starwood.

allyIn May, the ever-troubled EpiCentre in Uptown Charlotte sold to a California investment group for an estimated $130,000,000. Since then construction work has started on a new attached hotel property.

The Ally Center office building in Uptown (recognizable by the huge “Ally” lettering across the top) sold to a UK company mid-year for $109,000,000. The building itself only stands 15 stories tall.

 

Although office buildings hit new records in terms of square footage pricing and big sales, the real winners in the Charlotte market were industrial and retail property owners. Retail sales totals for 2014 jumped to over a billion, up from a little over $500 million in 2013 while industrial properties hit $733 billion, up from $293 billion in 2013.

Northlake mall

Overall, Charlotte real estate had a banner year. 2014 real estate totals – including commercial, retail, and residential – hit well over $4.5 billion total, up over a billion from the year before.

What can we say? It’s good to live in a city on the move!

 

 

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